Which of the Following Is Not True

question 21

Multiple Choice

Which of the following is not true?

• A) Financial markets can be used to adjust consumption patterns over time.
• B) Corporate investment decisions have nothing to do with financial markets.
• C) Financial markets deal with cash flows over time.
• D) Investment decisions rely on the economic principles of financial markets.

---

Definitions:

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business, minus any costs associated with its sale or disposal.

Damaged Merchandise

Items that have suffered physical harm impairing their value, functionality, or saleability, which often result in inventory write-offs or markdowns.

Cost

The amount of money or resources expended to acquire an asset, produce a product, or operate a business activity.

Stockholders' Equity

After subtracting liabilities, the remaining interest in a company's resources represents the stake owned by its shareholders.